Two senators recently introduced a bill to address issues not included in the 1996 Freedom to Farm Bill. The lawmakers say the measures are needed to fulfill the promise of a profitable agriculture industry based on market forces.

While the bill has not yet received action, it’s good news for cattle producers because it addresses key policy priorities.

Introduced by Sens. Richard Lugar, R-Ind., and John Boehner, R-Ohio, the Rural America Prosperity Act contains provisions calling for tax relief for U.S. ranchers and farmers and international trade enhancement. The 1996 farm bill was written in the House and Senate Agriculture Committees, and these measures are outside the committees’ jurisdiction.

The measure would allow cattle producers to fully deduct health care insurance costs. Although a recently passed law provides for this, it is not effective until 2002. The bill would make it immediate.

The bill also makes tax exempt the first $250,000 (or $500,000 for a married couple) from the sale of a ranch or farm. Further, the measure phases out death taxes over a 10-year period.

To enhance exports, the legislation goes further by granting the president Fast Track authority for six years. Fast Track allows the president to negotiate trade agreements with individual countries. The bill would also exclude agricultural products from unilateral sanctions.

“Most of the bill’s provisions are meaningful to cattle producers,” said Dale Moore director of legislative affairs for NCBA. “Tax reforms such as health insurance deductibility and estate tax relief are key cattle industry priorities. It’s pleasing to see congressmen working toward correcting some of the policy flaws that have prevented the farm bill from working as intended.”